Prepare a balance sheet as at 31 December 2010 for Gorban Ltd based on the following trial balance, and the further information shown below.

You are given the following additional information, which is not refl ected in the above trial balance.

(a) The authorised and issued share capital is divided into 200,000 shares at £1 each.

(b) Wages unpaid at 31 December 2010 amounted to £1,173.

(c) Inventories at 31 December 2010 were found to have been undervalued by £48,000.

(d) The provision for doubtful debts is to be increased by £1,870.

(e) Additional machinery was purchased on 31 December 2010 for cash at a cost of £29,368.

(f) The company issued 50,000 £1 ordinary shares at par on 31 December 2010.
(g) A customer owing £10,342 went into liquidation on 9 January 2011 – a bad debt which had not previously been provided for.
(h) The loan was repaid on 31 December 2010.

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Equity share capital Retained earnings Building at cost 200,000 108,968 130,000 Machinery at cost 105,000 Provision for depreciation as at 31 December 2010 30,165 Provision for doubtful debts at 31 December 2010 1,725 Accounts payable 35,112 Accounts receivable 42,500 Bank balance Loan 67,050 20,000 Inventories as at 31 December 2010 51,420 395,970 395,970